Cox Communications billion dollar Charter Communications merger offer made to combine largest cable companies in US
Cox Communications could merge with Charter Communications as an offer has been made to combine the largest cable companies in the United States.
In a 34.5 billion dollar (£26.3 billion) merger that would combine two of the largest cable companies in the US, Charter Communications has made an offer to acquire Cox Communications.
Known to many as Spectrum, Charter Communications, has more than 32 million customers in 41 US states. Cox is the third largest cable television company in the country, with more than 6.5 million digital cable, internet, telephone, and home security customers.
In an announcement on Friday (May 16), Charter said it will acquire Cox Communications’ commercial fibre and managed IT and cloud businesses. Cox Enterprises will contribute Cox Communications’ residential cable business to Charter Holdings, an existing subsidiary partnership of Charter.
If the merger was to go ahead, Cox Enterprises would own about 23% of the combined company’s outstanding shares. However, the deal, which includes 12.6 billion (£9.4 billion) in debt, would need approval from Charter shareholders as well as regulators.
If were to be given the green light, the combined company will change its name to Cox Communications within a year after closing. It will keep Charter’s headquarters in Stamford, Connecticut, and have a significant presence on Cox’s Atlanta, Georgia campus following the closing.
After the deal is complete, Charter chief executive Chris Winfrey will become president and chief executive of the combined company. Cox chief executive and chairman Alex Taylor will serve as chairman.
Shares of Charter rose 6% before the market opened.